Debt-stricken French luxury conglomerate Kering, the owner of Gucci, has agreed to sell its beauty products division, including the prestigious Creed perfume brand, to cosmetics powerhouse L’Oréal in a deal valued at $4.6 billion (about €4 billion).
Announcing the transaction on Sunday, both companies described it as the foundation of a “long-term strategic partnership in luxury beauty and wellness.” The deal also grants L’Oréal 50-year exclusive licenses to develop and distribute beauty products under Kering’s fashion houses — Gucci, Bottega Veneta, and Balenciaga — once existing agreements with U.S. firm Coty expire in 2028.
The acquisition, which remains subject to regulatory approval, is expected to be finalized in the first half of 2026.
L’Oréal Chief Executive Nicolas Hieronimus said the move would cement the company’s position in the fast-growing niche fragrance market through the Creed brand.
Kering’s newly appointed CEO, Luca de Meo, who took over a month ago, described the sale as a “decisive step” in the group’s efforts to reduce its €9.5 billion debt burden.
The divestment follows a challenging financial period for Kering, which reported a 46% slump in net profit to €474 million and a 16% drop in revenue to €7.6 billion in the first half of the year.
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